May 1, 2025 marks Vanguard’s 50th anniversary, and the company is celebrating by reflecting on its history of innovation and the impact it has made in the financial services industry.
Established in 1975 by John C. Bogle, Valley Forge, Pa.-based-based Vanguard introduced the pioneering investor-owned structure and launched the first index mutual fund a year later.
Under current CEO Salim Ramji’s leadership, Vanguard continues to prioritize its founding principles while adapting to the evolving financial landscape.
“Fifty years ago, Jack Bogle started a revolution. He founded Vanguard as a different kind of investment firm—one owned by its investors, ensuring a focus on making money for them, not from them,” Ramji said. “Everything we do is grounded in the belief that investing should be lower cost and more accessible, and we are profoundly grateful that our unique approach has earned the trust of 50 million investors.”
The company today boasts 20,000 employees, $10 trillion in global assets under management, 440 funds offered worldwide (including 215 in the U.S.), and a Vanguard asset-weighted average U.S. combined mutual fund and ETF expenses of 0.07% compared to the industry average of 0.44%.
Vanguard in February 2025 lowered expense ratios across more than 40% of its funds across share classes—meaning reductions to 168 mutual fund and exchange-traded share classes across 87 funds. The company said the reductions—averaging 20%—will save Vanguard’s investors more than $350 million in 2025 alone, with the fee cuts marking the largest annual expense ratio reduction in Vanguard’s nearly 50-year history.
The company noted in a media kit created for the 50th anniversary that its low-cost investments have heightened competition in the markets, pressuring asset managers to reduce their fees to remain competitive—widely known across the industry as “The Vanguard Effect.”
Bogle, who passed away in 2019 at the age of 89, is known as the father of index investing. He believed that high fees and expenses can significantly reduce long-term returns, and that low-cost options like index funds are more effective for building wealth over time.
Bogle advised, “Don’t look for the needle. Buy the haystack,” to emphasize that instead of trying to pick individual winning stocks (the needle), it’s better to invest in a broad, diversified portfolio (the haystack) to achieve consistent long-term growth.
Bogle often said “stay the course,” meaning investors should stick to their long-term investment plan and avoid making impulsive decisions based on short-term market fluctuations. He also used the phrase, “don’t just do something. Stand there,” as a way to stress the importance of patience and discipline in investing, believing that investors often make mistakes by reacting impulsively to market fluctuations.
“Now 50 years in, Jack Bogle’s entrepreneurial zeal to innovate for our clients is still at the heart of everything we do to help give investors the best chance for investment success,” Ramji said.
“Fifty years and 50 million clients later, I’m incredibly proud to be part of a firm that has transformed how people save for retirement and invest to reach their financial goals,” added President and Chief Investment Officer Greg Davis. “But there is still work to do. Investors deserve investment products and services that work in their best interests, and we will continue to take a stand on their behalf.”
SEE ALSO:
• ‘Historic’ Expense Ratio Reduction at Vanguard as of Feb. 1
• Vanguard, Raymond James Top New J.D. Power Rankings for Investor Satisfaction
• Vanguard Launches ETFs for Short-Term Liquidity Needs
• Podcast: 4 DC Trends to Watch for in 2025 with Vanguard’s Jeff Clark
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.